HomeContributorsFundamental AnalysisAsian Indices Trade Mixed Ahead Of Fed Meeting

Asian Indices Trade Mixed Ahead Of Fed Meeting

General Trend

  • Japanese equities underperform in Asia, USD/JPY declined on Monday; Topix Iron/Steel, Air Transportation, Insurance and Real Estate indices are among the decliners.
  • Financials decline in Australia amid market expectations for rate cut
  • Gaming, Property and Financial firms move higher in HK; Tech index trades mixed amid losses in shares of Xiaomi
  • Shanghai Composite rose by 0.3% during morning session, Consumer firms rise amid better retail sales figures; Financials move higher after MLF operation
  • Offshore yuan (CNH) rises amid stronger yuan fix, better Chinese data; USD Index FUTs decline before start of Fed meeting
  • AUD/JPY rises amid the release of RBA minutes and China data
  • The new US sanctions on Huawei are due to take effect on Tuesday (Sept 15th); The new sanctions will ban the supply of chips made with US components to Huawei [without prior approval from the US
  • US Fed due to hold policy meeting Sept 15-16th (Tues-Wed), BOJ to hold policy meeting Sept 16-17th (Wed-Thurs.)

Headlines/Economic Data

Australia/New Zealand

  • ASX 200 opened +0.2%
  • (AU) RESERVE BANK OF AUSTRALIA (RBA) SEPTEMBER MINUTES: Considering how further monetary measures can support recovery; Weaker AUD would provide more assistance to economic recovery
  • (AU) Australia interest rate futures are predicting a rate cut to 0.1% at the RBA’s Oct 6 policy meeting [current cash rate is 0.25%] – financial press
  • (AU) Westpac Chief Economist: Unlikely RBA will cut rates to 0.1% at this stage, Expects RBA will be patient
  • (AU) Victoria state (Australia) reports 42 additional coronavirus cases v 35 prior; 0 additional deaths (reports zero additional deaths for first time in 2 months)
  • (AU) Victoria State PM Andrews: Regional Victoria to have eased coronavirus restrictions (as expected)
  • (AU) AUSTRALIA Q2 HOUSE PRICE INDEX Q/Q: -1.8% V -1.3%E; Y/Y: 6.2% V 6.8%E

China/Hong Kong

  • Hang Seng opened -0.1%, Shanghai Composite -0.1%
  • (CN) CHINA AUG INDUSTRIAL PRODUCTION Y/Y: 5.6% V 5.1%E; YTD Y/Y: 5.6% V 0.2%E
  • (CN) CHINA AUG RETAIL SALES Y/Y: 0.5% V 0.0%E (First increase in 8 months); YTD Y/Y: -8.6% V -8.8%E
  • (CN) CHINA AUG FIXED ASSETS INVESTMENT (EX-RURAL) YTD Y/Y: -0.3% V -1.6%E
  • (CN) CHINA PBOC CONDUCTS CNY600B 1-YEAR MEDIUM-TERM LENDING FACILITY (MLF) OPERATION: RATE 2.95% V 2.95% PRIOR [the injection was greater than the CNY200B in MLF funds due to mature in Sept]
  • (CN) China PBOC sets Yuan reference rate: 6.8222 v 6.8361 prior (strongest yuan fix since May 13, 2019)
  • (CN) China PBoC Open Market Operation (OMO): skips 7-day reverse repos v Injects CNY80B in 7-day prior; Net drain CNY170B v Net drain CNY20B prior
  • Xiaomi [1810]: Comments on lock-up agreement related to Vice Chairman: The officer announced 5 year lock-up agreement; lock-up undertaking does not apply to a total of 470M Class B shares
  • (CN) China Global Times: The (coronavirus) vaccine may reach the Chinese Global Public in Nov
  • (HK) Hong Kong expected to announce new round of virus relief measures, latest social distancing measures later today
  • (CN) China to extend tariff exemption on some US goods (16 products) by 1 additional year, the exemption will now last until Sept 16 2021 – US financial press
  • (HK) US State Dept issued Level 3 travel advisory related to Hong Kong [2nd highest alert level]; Relaxed travel advisory related to China to Level 3 from Level 4
  • (CN) China Aviation Regulator: Aug Passengers Y/Y: -25.6% v -34.1% prior
  • (CN) China Aug Surveyed Jobless Rate: 5.6% v 5.6%e
  • (CN) CHINA AUG PROPERTY INVESTMENT YTD Y/Y: 4.6% V 4.1%E

Japan

  • Nikkei225 opened -0.5%
  • Sony [6758.JP]: Reported to reduce PS5 sales forecast to 11M v 15M units prior citing supply issues on Chips – Press
  • (JP) Incoming Japan PM Suga to reappoint Taro Aso as Deputy PM and Fin Min – press
  • (JP) Japan Fin Min Aso: New Cabinet must respond swiftly to coronavirus; Should think about early dissolution of Parliament due to Olympic games held next year
  • Tokyo Steel [5423.JP]: Maintains H-Beam Steel Prices at ÂĄ81K/t for October; Raises Hot-Rolled coil price to ÂĄ67K/t
  • (JP) Japan Cabinet Approves ÂĄ1.6T in extra virus response funds – Press (In line)

Korea

  • Kospi opened +0.3%
  • LG Chem [051910.KR]: Reported to supply batteries for Amazon Warehouse Robots – Press
  • (KR) South Korea confirms 106 additional coronavirus cases v 109 prior; 4 Additional deaths (13 straight days of <200 cases)

Other Asia

  • Asia Development Bank (ADB) cuts Developing Asia Countries GDP to -0.7% v +0.1% prior (First overall contraction since 1962)

Europe

  • (UK) PM Johnson’s govt wins initial vote on proposed internal markets bill that would change Brexit deal; House of Commons votes 340-263
  • (UK) UK reported to be extending ban on commercial evictions – FT

Levels as of 1:20 ET

  • Nikkei 225, -0.5%, ASX 200 -0.1% , Hang Seng +0.5%; Shanghai Composite +0.4% ; Kospi +0.5%
  • Equity S&P500 Futures: +0.3%; Nasdaq100 +0.4%, Dax +0.3%; FTSE100 -0.5%
  • EUR 1.1899-1.1858 ; JPY 105.75-105.60 ; AUD 0.7331-0.7266 ;NZD 0.6729-0.6683
  • Gold +0.7% at $1,977/oz; Crude Oil flat at $37.23/brl; Copper +0.4% at $3.0768/lb

 

Trade The News
Trade The Newshttp://www.tradethenews.com/
All information provided by Trade The News (a product of Trade The News, Inc. "referred to as TTN hereafter") is for informational purposes only. Information provided is not meant as investment advice nor is it a recommendation to Buy or Sell securities. Although information is taken from sources deemed reliable, no guarantees or assurances can be made to the accuracy of any information provided. 1. Information can be inaccurate and/or incomplete 2. Information can be mistakenly re-released or be delayed, 3. Information may be incorrect, misread, misinterpreted or misunderstood 4. Human error is a business risk you are willing to assume 5. Technology can crash or be interrupted without notice 6. Trading decisions are the responsibility of traders, not those providing additional information. Trade The News is not liable (financial and/or non-financial) for any losses that may arise from any information provided by TTN. Trading securities involves a high degree of risk, and financial losses can and do occur on a regular basis and are part of the risk of trading and investing.

Featured Analysis

Learn Forex Trading